Zscaler price target raised to $240 from $220 at JPMorgan

JPMorgan analyst Brian Essex raised the firm’s price target on Zscaler (ZS) to $240 from $220 and keeps an Overweight rating on the shares ahead of the company’s earnings report due next week. Investor expectations have been mixed, but the firm thinks initial guidance was “conservative,” the bar for Q1 billings growth is “low,” demand remains healthy, and billings are set up well to accelerate, all of which makes the setup through the remainder of its fiscal year “compelling,” the analyst tells investors in a preview. The firm’s raised target reflects higher peer multiples and expectations of acceleration through FY25, the analyst noted.